Crypto Millionaires Are Fizzling Out. But Is There A Way Back?

Summary:
• There has been a steep decline in the number of crypto millionaires in the past eight months. We discuss this and the possible recovery path.

In the first half of 2022, there was a substantial drop of approximately 70 percent in the number of Bitcoin millionaires. According to data by Finbold, as of the 29th of June in 2022, the total number of BTC millionaires was 30,626. However, because of the negative pressure on BTC since the beginning of the year, the value of the cryptocurrency market as measured by its market cap has dropped by more than one trillion dollars. As a direct consequence of this, a crisis that affects the whole digital asset industry on a worldwide scale has arisen.

The crypto millionaires’ losses and potential path to recovery

Since the beginning of January, the number of Bitcoin billionaires has decreased significantly. However, the loss is more spectacular if we take the period farther back to October 2021, when Bitcoin was near its all-time high. This is because at that time, BTC was trading near its all-time high.

According to the information provided by BitInfoCharts.com, there were 26,284 addresses that held a Bitcoin balance of more than one million dollars. Also, during this time, there were 4,342 of the addresses that had a total balance of around $10 million or more. According to the most recent data available, between October 28, 2021, and June 29, 2022, the number of verified millionaire Bitcoin addresses fell by 73.62%, from 116,139.

The bearish market is likely to continue claiming more Bitcoin millionaires, and this could destabilize the retail segment. Worse still, it could potentially permeate into the institutional segment, driven by negative sentiment. Generally, retail investors are influenced by fear and greed, while institutional investors respond to the resultant positive or negative market sentiment.

Nonetheless, some institutions could be daring enough to go against the grain by purchasing more crypto. A good example is Microstrategy. The company revealed on Wednesday that between May 3 and June 28 it had acquired 480 Bitcoins for about $10 million during the course of the acquisition period. If more institutional investors adopt a similar strategy of buying the crypto dip, then we could see a resurgence in the market. Ultimately, that could see some recovery in the number of crypto millionaires.